BP shares are still falling: BP is leading a billion-euro hydrogen project in Australia

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BP will receive a 40.5 percent stake in the project, known as the Asian Renewable Energy Hub, and will be its operator, the British said. It is one of the largest green hydrogen projects planned to date and is planned to cover an area of ​​2,500 square miles. Intercontinental Energy will hold a stake of around 26 percent and CWP Global will have an 18 percent stake in the project. Also on board are divisions of the Macquarie Group, which have a share of around 15 percent.

Alex Hewitt, CEO of CWP Global, said BP brings technical expertise, experience with complex projects in remote locations and a global energy trading business. As an energy carrier, hydrogen can play an important role in the energy transition. No greenhouse gases are released during combustion. It can thus be used as a climate-friendly substitute for fossil fuels in industry or for transport, although transport and storage are difficult.

Remote, sparsely populated Western Australia is an ideal place for green hydrogen development due to its abundant sun, strong winds and proximity to the ocean. According to the developers, seawater can be converted into hydrogen and ammonia. The project aims to generate up to 26 gigawatts of electricity at full capacity – about a third of all electricity generated in Australia in 2020 – and use that electricity to split water into hydrogen and oxygen to produce so-called green energy to produce hydrogen and a downstream product known as green ammonia.

The aim is to produce around 1.6 million tons of the fuel or the equivalent of green ammonia annually, with the first production of hydrogen already scheduled for 2027. For comparison, the European Union has set a target of producing around 10 million tonnes of the fuel by 2030 and importing another 10 million tonnes to replace gas, coal and oil. The target customers of the project, which has been in progress since 2014, include the Australian mining industry and later importers such as Japan and South Korea.

The BP share is listed in London at times 1.25 percent weaker at 4.30 pounds.

LONDON/SYDNEY (Dow Jones)

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